Nuveen Churchill Direct Lending Corp. (NCDL) reported fourth‑quarter 2025 results that included net investment income of $0.44 per share, matching analyst expectations of $0.43. The company’s regular distribution was set at $0.36 per share, with a supplemental dividend of $0.04, bringing total quarterly payout to $0.40 per share. The dividend reset from the prior $0.45 regular distribution reflects management’s assessment of the current interest‑rate and spread environment.
Revenue for the quarter was $50.0 million, slightly below the consensus estimate of $50.5 million. The shortfall was driven by a modest decline in portfolio yields, which offset the rebound in gross originations that rose to $59.4 million from $29.2 million in Q3 2025. Net investment income fell to $50.0 million from $51.1 million in the prior quarter, largely due to lower yields on existing loans.
Net Asset Value per share declined to $17.72 at December 31 2025, down from $17.85 at the end of Q3 2025 and $18.18 a year earlier. The share‑repurchase program, authorized for $50 million, will be executed at prices below NAV, underscoring management’s confidence that the stock trades at a discount to intrinsic value.
"We have reset our regular quarterly distribution to a level that considers the current interest‑rate and spread environment. In conjunction with the reset of our dividend, we are announcing a new $50 million share repurchase program, which demonstrates our confidence in the overall strength of our portfolio," said CFO Shai Vichness.
"We are pleased to conclude 2025 with a strong quarter of financial results," said CEO Ken Kencel.
The earnings beat, though modest, was driven by disciplined cost management and a favorable mix of higher‑yield assets. The revenue miss, however, signals ongoing pressure from declining portfolio yields and a competitive lending environment. The company’s outlook remains cautious, with no new quantitative guidance issued, but the share‑repurchase program and dividend reset suggest a focus on long‑term value creation.
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